El Compas Project Monthly Photo Update

November 2017

Crushing

Fine Ore Bins

LaboratoryAdministration

Ball Mill Housing

Flotation Housing

Thickener

WarehouseConcentrate Storage & Filtering

November Project Highlights

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No lost time injury accidents

All mine services complete

Jumbo commenced lifting ramp production pace

Service entry ramp entrance 85% complete

100m mine development decline advance

Mine portal infrastructure at 95%

Plant construction at 75% completion

Production start-up on track for late Q1 2018

El Compas Timeline

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EL Compas3 10 17 24 1 8 15 22 29 5 12 19 26 3 10 17 24 31 7 14 21 28 4 11 18 25 4 11 18 25 1 8 15 22 29 6 13 20 27 3

9 16 23 30 7 14 21 28 4 11 18 25 2 9 16 23 30 6 13 20 27 3 10 17 24 3 10 17 24 31 7 14 21 28 5 12 19 26 2 9

14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

Mine Explosives Magazine Permitting

Mine Access Road

Mine Powerline, Offices, Fencing

Mine Portal, Mine Laydown

Mine development using Pyroblast

Mine development

Mine Ore Supply

Plant powerline

Plant engineering and design

Plant procurement

Plant Construction

Plant Commissioning/Operation Sales Commence

Tailings Design

Tailings Construction

ACTIVITY

March April MaySeptember October November December January February

Mine Portal

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The portal showing the notice boards, ventilation

duct, fan, air and water lines in place. The final

power-lines are the last step.The final lengths of power cable are

about to be laid over the cable trays.

Blast monitoring

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Mine blasts are monitored in the neighborhood with results

officially registered. The vibrations from the Pyroblast-C

exploder agent are well below the recommended limit.

Ramp Advance

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The blasting cycle with Pyroblast-C

continued to improve. Shortfalls in

progress during the month were alleviated

when the jumbo arrived onsite.

The burn cut continues to be modified

as the ground conditions and

machinery available alter. Total ramp

advance was at 104m at month end.

Safety and Security

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Security fencing around the property

continued in November. The perimeter road

is also complete now separating the nearby

quarry traffic from the underground mine.

Safety inductions are well attended as new

contractors are constantly arriving.

Rehabilitation

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Pine trees are part of the rehabilitation

plan. These seedlings recently arrived and

will be tended in the greenhouse before

planting.

All programmed areas of disturbance are

surveyed for plant species and many species

are replanted including these Maguey Cacti.

Mine Service Entry

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Old mine ore stockpiles are being assessed

for grade and recoverability.

The old mine entrance was re-excavated.

Reinforcement will be added in December.

Crushing Circuit Foundation

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The conveyor to connect the crushing plant

to the fine ore bin arrived from El Cubo

Platforms for the mobile crushing plant are

complete, MCC and switchgear connected to

main power. Units are due for arrival in January.

Ball Mill

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The mill only awaits the arrival of the new

bronze bushings on December 5th before

final assembly.

Removal and reinforcement of the cyclone

and flash cell structure has commenced.

Ball Mill

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Checking the torque of the mill head and

shell bolts.

The mill bearing lubrication system is complete.

Conditioner Tank & Flash Cell

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The conditioner tank was raised to obtain

gravity feed to the flotation cells and avoid

another pump.

The flash cell at the fabricators.

Flotation Cells & MCC

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Commencing to install the motor starter

panels in the new motor control circuit.Two of the three main rougher flotation cells

have had the diffusion mechanisms

installed.

Flotation Cleaner Cells & Underdeck

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The transfer pump boxes are complete, piping

and electrical installation are in process.The cleaner cell repair is complete, only

awaiting motors to return from remanufacture.

Tailings & Concentrate Thickeners

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Tailings thickener is only pending the alignment

and leveling of rakes and transmission

installation.

Concentrate thicker is only pending the

alignment and leveling of rakes and

transmission installation.

Concentrate Filtering and Storage Area

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The concentrate security fence and other

such measures were completed.The concentrate storage building floor

was sealed.

Plant Security Measures

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Plant fencing and guard houses are complete.The front gate security measures are 95%

complete.

Tailings Deposit

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The engineers in field review of the tails facility

details.

Work commenced on borrow

material selection for the tailings

storage facility.

Key Deliverables for December

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• No lost time injury accidents

• Obtain explosives license

• Commence mine dewatering

• Obtain access to old mine workings

• Mine portal infrastructure complete

• Plant construction completion at 90%